Friday, December 21, 2007

Business as Usual for Pepco Holdings, Inc.

Here's an interesting item from the Dow Jones Newswire that was brought to my attention a few days ago.
Constellation Energy Group Inc. (CEG) Friday said it will pay an undisclosed sum to buy 545 megawatts of electric power to be produced between 2011 and 2017 at a new combined cycle natural gas plant to be built by Pepco Holdings Inc. (POM) Conectiv unit in York County, Pa.
Constellation Energy will supply natural gas to the facility and provide payments over the delivery term to acquire the output of the facility, which is to be built in Peach Bottom Township, Pa., near Maryland.

You may be aware that Delmarva Power is saying it can buy onshore, out of state wind power cheaper than the proposed offshore wind project. But when it comes to investing in new power generation, it's business as usual for Pepco Holdings, which you might recall, owns Delmarva Power as well as Conectiv Energy.
By the way, the power is being sold to Constellation Energy via a Power Purchase Agreement (PPA), something Delmarva doesn't want to sign with Bluewater Wind.
Delmarva Power's position seems to be we're in favor of wind power, just not here, not now. Not here means don't build it in Delaware as called for in HB 6. Not now means don't do it as part of the process mandated by HB 6, but later when we get around to it. And now Delmarva's parent company seems to be saying not even wind; we'd rather build another natural gas plant, and get a utility to sign a PPA to buy the power and sell it to its customers for a 15 year period.
There is one difference between this PPA and the Bluewater PPA that Delmarva finds so distasteful: The one between Conectiv and Constellation is unlikely to protect customers from rising natural gas prices.


Blogger Nancy Willing said...

I got wind of this through an email alert from MD PIRG but didn't connect it to PEPCO yesterday:

Even after delivering over a hundred petition signatures to FEMA, they still aren't taking action to protect Marylanders, so we need to take the next step to stop Constellation's plans to derail Maryland from smarter energy solutions.

We need to tell Constellation's CEO, Mayo Shattuck III, how we feel about his plans to build a new nuclear reactor at Calvert Cliffs, and make sure he knows that we won't back down until he has plans to push for a cleaner, safer and more affordable solution to Maryland's energy situation.

To make our voices louder, please forward this e-mail to your friends and family and ask them to help us by voicing their opinion to Constellation Energy's CEO.

11:09 AM, December 21, 2007  

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